zerohedge.com / by Tyler Durden / Aug 7, 2017 9:29 AM
The confusion over the direction of Chinese capital flows continues to grow.
On one hand, overnight the PBOC reported that China’s foreign-exchange reserves “posted a sixth straight monthly increase” as the yuan strengthened and economic growth remained robust, Bloomberg reported. Specifically, Beijing said that China’s foreign currency stockpile rose $23.9 billion to $3.081 trillion in July, higher than the $3.075 trillion estimate. The narrative was ready to go: as Bloomberg stated, “solid economic data and the presence of curbs on moving money abroad have helped restore confidence in the currency and ease outflow pressure. The foundation for steadier cross-border capital flows has become more solid, the State Administration of Foreign Exchange said last month.”